029 - Business Entity Types for Architects: Save Your Assets

Business entity types for architects explained. This episode breaks down sole proprietorships, LLCs, LLPs, S-Corps, and C-Corps so you know which structure protects your practice.

We start with a real story about two architects who partnered on a project without forming a business entity and accidentally created a general partnership by default. That mistake cost one of them $45,000. From there, we walk through each entity type covering liability protection, tax implications, and management structure.

Then we put it all into practice with real scenarios: starting a solo firm, forming a small partnership, and scaling for growth. This is essential PcM exam content that most architecture schools never teach.

📝 Key topics covered:

• Sole proprietorship: easy to form but zero liability protection

• LLC: the most popular structure for small architecture firms

• LLP: designed for professional partnerships with separate projects

• S-Corp vs C-Corp: pass-through taxation vs double taxation

• How to choose the right entity for different scenarios

• Where business entity questions show up on the PcM exam

⏱️ Chapters:

(0:00) Introduction and Partnership Dilemma

(3:55) The Business Entity Types

(4:10) Sole Proprietorship

(6:06) LLC

(7:54) LLP

(9:27) Corporations (S-Corp and C-Corp)

(11:35) Choosing the Right Entity

(14:11) Business Entities on the ARE

(16:02) Practical Considerations

(17:10) Conclusion

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📝 Download the FREE 2-page Business Entities study notes

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